Contract wording help

[siouxchief]

Hi,

Just been looking at my first contract wording. Could you please let me know if this all sounds okay and in case of point 4 what insurance they are looking for specifically? I have replaced the consultancy name.

Thanks

1.The Consultancy may terminate this Agreement on 2 weeks’ prior written notice to Subcontractor at any time.
2.The Consultancy may terminate this Agreement immediately if
(i) The Consultancy’s Client terminates the Head Agreement with The Consultancy or if
(ii) The Consultancy’s Client decides that the Subcontractor is not suitable for the services it requires.
3.Subcontractor may terminate this Agreement on 4 weeks’ prior written notice
to The Consultancy.

4. The Subcontractor shall have liability for and shall indemnify The Consultancy (and
The Consultancy’ directors, employees, officers, agents and customers) against any
losses, liabilities, damages, costs or expenses (including legal expenses)
arising from any breach by the Subcontractor or any substitute engaged by
the Subcontractor, of the terms of this agreement, including reckless or
negligent act, omission or default in the provision of the Services.

[northernladuk]

Isn't section 4 just talking about PI/PL insurance which you can take out with a number of different providers? Odd it doesn't mention values though.

Have you had it reviewed by QDOS, B&C or any other professional outfit first?

[Ticktock]

Section 4 isn't about insurance at all. It's simply the consultancy saying "If you screw something up, then you're liable, not us".
Of course, this is why you'd want insurance, and I'd presume insurance is specifically mentioned somewhere else in the contract.

[siouxchief]

Yeah i was expecting values too. What values do people normally use and i assume both insurances are required? This is IT work at a Hedge Fund by the way.

I didn't get it reviewed by a professional body but its beginning to sound like a good idea now...

Cheers

[siouxchief]

This is the only extra bit on insurance:

At the start and throughout the term of this Agreement, the Subcontractor shall maintain in force full and comprehensive Insurance Policies.
The Subcontractor shall, at the start of this Agreement and upon each renewal provide The Consultancy with written evidence reasonably acceptable to The Consultancy that the Insurance Policies are current and in force.

[northernladuk]

Yeah i was expecting values too. What values do people normally use and i assume both insurances are required? This is IT work at a Hedge Fund by the way.

I didn't get it reviewed by a professional body but its beginning to sound like a good idea now...

Cheers

IMO having them reviewed is absolutely essential. Even for fairly straight forward gigs with big agencies it's worth using at least the free offering from QDOS to check for IR35 (if you have your PI/PL with them). For smaller complex situations the £90 for a full review is peanuts compared to what you might get stuck with. These outfits will also negotiate the terms on your behalf as well.

[siouxchief]

Thanks for the QDOS tip NLUK I will check them out and hopefully they are reasonable for PI/PL which looks like are the main 2 I need. Glad no one saw anything wrong in regards notice periods I provided too.

[northernladuk]

Thanks for the QDOS tip NLUK I will check them out and hopefully they are reasonable for PI/PL which looks like are the main 2 I need. Glad no one saw anything wrong in regards notice periods I provided too.

I'd be careful assuming no comments mean we don't see anything wrong. I don't know enough about the whole thing to comment and would suggest you leave it to the professionals. As already shown other elements in the contract which we can't see may influence opinion on the small bit we can. It's a contractor forum, not a contract specialists one

[siouxchief]

Fair enough :-)